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Jul. 2, 2015, 1:59 PM
- Canadian equity financings of C$30.3B were a record, and up 40% from a year ago, according to Thompson Reuters, and Royal Bank of Canada (NYSE:RY) led the way on advisory roles, with Bank of Montreal (NYSE:BMO) and CIBC (NYSE:CM) rounding out the top three.
- The largest deal to-date was Element Financial's C$2B raise, followed by Valeant's C$1.9B.
Jun. 26, 2015, 10:55 AM
- The operation includes more than 200 professionals, about 830 plans, and assets under administration of $26B, and BMO's decision to sell is part of the bank's strategy to focus on its asset management business. BMO will continue to manage a portion of the investments in the plans.
- The buyer is Indianapolis' OneAmerica Financial Partners. Terms were not disclosed and the deal is expected to close in Q3.
May 29, 2015, 2:25 PM
- The last of Canada's big six lenders to report FQ2 results, Bank of Nova Scotia (BNS +1.2%) beat estimates (as did the others), helped by strong action in capital markets. The bank also announced a 24M share buyback.
- “These results were on balance better than I would have expected a few weeks ago, however they’re not strong enough to really serve as much of a catalyst for the stocks,” says Edward Jones' Jim Shanahan. "The stocks are trading cheaper, but given a weaker loan growth outlook and weaker return profiles, that’s probably warranted.”
- RBC Capital is impressed enough with Scotiabank's results to upgrade to Outperform from Sector Perform.
- Checking the scorecard this week: BNS is up 1.2%, while CIBC (NYSE:CM) is down 1.8%, Royal Bank of Canada (NYSE:RY) is down 2.7%, Bank of Montreal (NYSE:BMO) down 3.9%, and TD Bank (NYSE:TD) 4.3%.
- YTD, Scotiabank also leads with just a marginal decline, while the other four lenders are down anywhere from about 8%-13%.
May 27, 2015, 7:53 AM
- Canadian P&C adjusted net income of $487M up 1% Y/Y. Revenue up 4%, expenses of 6%. Personal banking loan and deposit growth of 2% and 6%, respectively. Commercial banking loan and deposit growth of 6% and 8%, respectively.
- U.S. P&C adjusted net income of $176M up 14%. Revenue of $707M fell 1%. Adjusted noninterest expense of $452M about flat. Loan growth of 6% led by C&I loans up 17%.
- Wealth Management adjusted net income of $265M up 34%, thanks to a mixture of organic growth and the acquired F&C business.
- Capital Markets net income of $296M down 3%. Revenue growth up 6% thanks to stronger trading results.
- CET1 Ratio of 10.2% up 10 bps during the quarter.
- Earnings call at 2 ET
- Previously: Bank of Montreal declares $0.82 dividend (May 27)
- Previously: Bank of Montreal beats by $0.05, misses on revenue (May 27)
- BMO flat premarket
May 27, 2015, 7:33 AM
- Bank of Montreal (NYSE:BMO) declares $0.82/share quarterly dividend, 2.5% increase from prior dividend of $0.80.
- Forward yield 5.25%
- Payable Aug. 26; for shareholders of record Aug. 3; ex-div July 30.
May 27, 2015, 7:31 AM
- Bank of Montreal (NYSE:BMO): Q1 EPS of $1.71 beats by $0.05.
- Revenue of $4.5B (+11.4% Y/Y) misses by $40M.
May 26, 2015, 5:30 PM
Apr. 21, 2015, 1:19 PM
- Bank of Montreal (NYSE:BMO), CIBC (NYSE:CM), Scotiabank (NYSE:BNS), RBC (NYSE:RY), and TD Bank (NYSE:TD) all sold options to U.S. shale drillers looking to hedge against lower prices back when oil was above $90 per barrel. Now they're on the hook for at least $478M, according to Bloomberg.
- National Bank analyst Peter Routledge says it's a sizable liability, but given the heavy regulation of Canadian lenders, it's a pretty good bet they hedged their exposure. If you want to worry about Canadian banks as regards to oil. says Routledge, it's on the lending side, not the capital markets side.
- “We actively hedge and manage our exposures to fluctuations in commodity prices,” says BMO's Anthony DeMartino, head of commodity trading.
Apr. 1, 2015, 9:17 AM
- "It's inevitable that there will be some restructurings of loans that come, but on the other side of that the net will be positive," says Bank of Montreal (NYSE:BMO) CEO William Downe, expecting a pickup in M&A activity thanks to troubles in the oil patch.
- There's going to be a reconfiguration," he tells shareholders at the bank's annual meeting. "We expect to play a part in advising companies in the sector and we also expect to be involved in the financing of ventures that result from this."
- He also notes the price declines in heating oil and gasoline are effectively putting another $20 per week in the pockets of North Americans - "that's net stimulative to the economy."
- Downe says the bank is focused on organic growth, and has no acquisition plans at the moment.
Mar. 23, 2015, 12:29 PM
- The Regional Bank Coalition is urging D.C. to remove the $50B threshold at which, under current Dodd-Frank rules, lenders are subject to boosted regulatory standards.
- The fight thus far has centered on whether to raise that bar (something even the Fed appears to support) or scrap it altogether.
- "Regional banks do not create systemic exposure through market making or complex networks of interconnected transactions with other financial firms," says the group.
- Regional Bank Coalition website
- The group: SunTrust (NYSE:STI), Regions Financial (NYSE:RF), Huntington Bancshares (NASDAQ:HBAN), Fifth Third (NASDAQ:FITB), Capital One (NYSE:COF), BMO Financial (NYSE:BMO), Compass (NYSE:BBVA), BB&T (NYSE:BBT), Bank of the West, and AmEx (NYSE:AXP).
- ETFs: KRE, KBE, IAT, KBWB, QABA, KRU, KBWR, KRS
Mar. 17, 2015, 7:56 AM
- It wasn't long ago when Canadian finance minister Jim Flaherty warned of overheating the housing market when lenders dropped benchmark mortgage rates below 3%. What his successor Joe Oliver might say or do is unknown, but Bank of Montreal (NYSE:BMO) today cuts its 5-year, fixed-rate mortgage by 20 basis points to 2.79% - it would be the lowest posted rate of the country's Big Five banks.
- BMO's move comes as it and others in the industry battle slower consumer loan growth, not to mention drags in other operations thanks to the crash in oil prices, and the bank last month missed FQ1 estimates.
- ETFs: EWC, CNDA, EWCS, FCAN, QCAN
Mar. 16, 2015, 8:40 AM
- Chicago-based BMO Harris Bank says the move - allowing customers to withdraw cash with a smartphone app rather than an ATM card - will allow for the double-whammy of faster transactions and reduced fraud.
- Banks, of course, are under pressure to save money by slashing branch networks while also cutting down on fraud - so this potentially gives BMO a leg up on its competition.
- BMO says a mobile cash transaction takes 15 seconds compared with 45 when using a debit card. It's also safer since the customer doesn't need to insert a card, thus eliminating the change of "skimming" devices pulling information.
- Why roll it out in the States instead of Canada? Card security in this country lags behind that up north.
Mar. 11, 2015, 7:07 AM
- UBS has poached a U.S. team of some 15 oil and gas investment bankers from Bank of Montreal (NYSE:BMO), significantly weakening the energy deal making capacity at Canada’s fourth-largest bank, Reuters reports.
- Those leaving BMO are part of a specialist group dubbed Acquisitions & Divestitures. The group carries out the complex engineering and technical research needed to value oil and gas deposits far beneath the earth's surface.
Mar. 5, 2015, 8:28 PM
- The minimum Tier 1 common capital ratio for banks is 5%, according to the Fed, and here's how the 31 lenders stacked up under the central bank's severely adverse scenario vs. a year ago (h/t: WSJ):
- Deutshce Bank (NYSE:DB): 34.7%, not tested a year ago
- DIscover (NYSE:DFS): 13.9% vs. 13.2% a year ago
- Bank of New York Mellon (NYSE:BK): 12.6% vs. 13.1%
- American Express (NYSE:AXP): 12.5% vs. 12.1%
- Northern Trust (NASDAQ:NTRS): 12.3% vs. 11.7%
- State Street (NYSE:STT): 11.8% vs. 13.3%
- Citizens Financial (NYSE:CFG): 10.7% vs. 10.7%
- KeyCorp (NYSE:KEY): 9.9% vs. 9.2%
- Capital One (NYSE:COF): 9.5% vs. 7.8%
- PNC Financial (NYSE:PNC): 9.5% vs. 9%
- Santander Holdings USA (SAN's U.S. unit): 9.4% vs. 7.3%; shares +0.8% after hours
- BMO Financial (BMO's U.S. unit): 9% vs. 7.6%
- Comerica (NYSE:CMA): 9% vs. 8.6%
- Huntington Bancshares (NASDAQ:HBAN): 9% vs. 7.4%
- HSBC North America (NYSE:HSBC): 8.9% vs. 6.6%
- U.S. Bancorp (NYSE:USB): 8.5% vs. 8.2%
- Regions Financial (NYSE:RF): 8.3% vs. 8.9%
- Citigroup (NYSE:C): 8.2% vs. 7.2%
- SunTrust (NYSE:STI): 8.2% vs. 8.8%
- BB&T (NYSE:BBT): 8.1% vs. 8.4%
- MUFG Americas Holdings (NYSE:MTU): 8% vs. 8.1%
- Ally Financial (NYSE:ALLY): 7.9% vs. 6.3%
- Fifth Third Bancorp (NASDAQ:FITB): 7.9% vs. 8.4%
- Wells Fargo (NYSE:WFC): 7.5% vs. 8.2%
- M&T Bank (NYSE:MTB): 7.3% vs. 6.2%
- Bank of America (NYSE:BAC): 7.1% vs. 5.9%; shares +2.1% after hours
- JPMorgan (NYSE:JPM): 6.5% vs. 6.3%
- BBVA Compass (NYSE:BBVA): 6.3% vs. 8.5%
- Goldman Sachs (NYSE:GS): 6.3% vs. 6.9%
- Morgan Stanley (NYSE:MS): 6.2% vs. 6.1%
- Zions Bancorp (NASDAQ:ZION): 5.1% vs. 3.6%; shares -1.7% after hours
- The lenders were also informed today whether their capital return plans would put them below the Fed's 5% threshold, giving them a 6-day window with which to change those requests, if need be. Last year, both BofA and Goldman scaled back their dividend/buyback requests, allowing them to pass the CCAR. This year's CCAR results will be announced on Wednesday.
- 2015 Stress Test Methodology and Results
Feb. 24, 2015, 7:51 AM
- Bank of Montreal (NYSE:BMO) declares C$0.80/share quarterly dividend, in line with previous.
- Forward yield 4.12%
- Payable May 26; for shareholders of record May 1; ex-div April 29.
Feb. 24, 2015, 7:44 AM
- "BMO's first quarter results reflect the impact of an unsettled environment in which we saw significant movements in oil prices, long-term interest rates and the Canadian dollar," says CEO Bill Downe of his bank's nine cent earnings miss.
- The dividend is left unchanged at C$0.80.
- Canadian P&C banking adjusted net income of $503M up 4% Y/Y, partly thanks to higher revenue and lower loan loss provisions, partly offset by higher expenses.
- U.S. P&C banking adjusted net income of $205M up 14% Y/Y.
- Wealth Management adjusted net income of $186M up marginally from a year ago. AUM of $852B up 43% Y/Y, with the purchased F&C business contributing more than half of that increase.
- Capital Markets net income of $221M off 20% Y/Y, with revenue off 5%.
- CET1 ratio of 10.1%, unchanged from the previous quarter. Book value per share of $52.98 up 10% Q/Q.
- Conference call at 2 ET
- Previously: Bank of Montreal misses by C$0.09, beats on revenue (Feb. 24)
- BMO flat premarket, but off 13% YTD.
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